California 2013-2014 Regular Session Status: Passed Assembly

AB 1859 — Professional fiduciaries: professional corporations.

Last action — From Senate committee without further action.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2013-2014 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law, the Professional Fiduciaries Act, establishes the Professional Fiduciaries Bureau within the Department of Consumer Affairs and requires the bureau to license and regulate professional fiduciaries, as specified. The Moscone-Knox Professional Corporation Act provides for the organization of a corporation under specified provisions of law for the purposes of qualifying as a professional corporation under that act and rendering professional services. The act defines professional services as services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. This bill would provide for the formation of licensed professional fiduciary corporations pursuant to the Moscone-Knox Professional Corporation Act, as specified, and would make these corporations subject to registration by the Professional Fiduciaries Bureau and payment of a licensure fee, as specified. The bill would provide that it is unprofessional conduct and a violation of the Professional Fiduciaries Act to violate, attempt to violate, directly or indirectly, or assist in or abet the violation of, or conspire to violate these provisions, the Moscone-Knox Professional Corporation Act, or any regulations duly adopted under those laws. The bill would require the name of a licensed professional fiduciary corporation and any name or names under which it may render professional services to contain the words "licensed professional fiduciary" and wording or abbreviations denoting corporate existence. The bill would require each director, shareholder, officer, or employee of a licensed professional fiduciary corporation who renders professional services to be a licensed person with regard to the professional services rendered and to also be a licensed professional fiduciary. The bill would prohibit the income of a licensed professional fiduciary corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined, from accruing, in any manner, to the benefit of the shareholder or his or her shares in the licensed professional fiduciary corporation. The bill would require the bylaws of a licensed professional fiduciary corporation to include a provision that requires the capital stock of the corporation owned by a disqualified person, as defined, or a deceased person, to be sold to the corporation or to the remaining shareholders of the corporation within 60 days. The bill would require a licensed professional fiduciary corporation to maintain insurance coverage of at least $1,000,000 for claims against the corporation, as specified. The bill would require a licensed fiduciary corporation that is appointed as a guardian, conservator, personal representative, or trustee by a court to be liable for any licensed professional fiduciary who violates the powers and duties of those appointments while acting on behalf of the corporation. The bill would impose other various duties upon a licensed professional fiduciary corporation, as specified. The bill would provide authority to the bureau to enforce the provisions of this act, as specified, and in accordance with the Administrative Procedure Act. Existing law governing the administration of estates and trusts authorizes the appointment of a person as a personal representative of a decedent's estate, a guardian or conservator of a person or an estate, or a trustee. Existing law defines "person" to include a corporation for these purposes. This bill would provide that if a licensed professional fiduciary corporation is appointed as a guardian, conservator, trustee, or personal representative, each shareholder, officer, director, or employee of the corporation who is a licensed professional fiduciary may individually exercise the powers and duties of that appointment, as specified.

Bill Text

Action History

  1. From Senate committee without further action.

  2. In committee: Set, second hearing. Hearing canceled at the request of author.

  3. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

  4. In committee: Set, first hearing. Hearing canceled at the request of author.

  5. Referred to Com. on JUD.

  6. In Senate. Read first time. To Com. on RLS. for assignment.

  7. Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 4972.)

  8. Read second time. Ordered to consent calendar.

  9. From committee: Do pass. To consent calendar. (Ayes 17. Noes 0.) (May 7).

  10. From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (April 22). Re-referred to Com. on APPR.

  11. Re-referred to Com. on B.,P. & C.P.

  12. From committee chair, with author's amendments: Amend, and re-refer to Com. on B.,P. & C.P. Read second time and amended.

  13. From committee: Do pass and re-refer to Com. on B.,P. & C.P. (Ayes 12. Noes 0.) (April 7). Re-referred to Com. on B.,P. & C.P.

  14. Re-referred to Com. on B. & F.

  15. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  16. Re-referred to Com. on B. & F.

  17. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  18. Referred to Coms. on B. & F. and B.,P. & C.P.

  19. From printer. May be heard in committee March 22.

  20. Read first time. To print.

Sponsors

  • Maienschein · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Maienschein

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 1859 MAIENSCHEIN Consent Calendar Second Day

Passed 78 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 71001
Democratic 4000
Republican 3000
Total 78001
% of votes cast 99%0%0%1%
How each member voted (79)
Member Party Vote
Achadjian — Yea
Bigelow — Yea
Bloom — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Harkey — Yea
Linder — Yea
Maienschein — Yea
Mansoor — Not Voting
Skinner — Yea
Ting — Yea
Wagner — Yea
Waldron — Yea
Wieckowski — Yea
Campos — Yea
Gordon — Yea
Chau — Yea
Hagman — Yea
Holden — Yea
Mullin — Yea
Nazarian — Yea
Allen — Yea
Bonilla — Yea
Olsen — Yea
Quirk — Yea
Rendon — Yea
Rodriguez — Yea
Alejo — Yea
Ammiano — Yea
Chávez — Yea
Conway — Yea
Cooley — Yea
Daly — Yea
Donnelly — Yea
Eggman — Yea
Weber — Yea
Wilk — Yea
Gray — Yea
Bocanegra — Yea
John A. Pérez — Yea
Salas — Yea
Lowenthal — Yea
Garcia — Yea
Gatto — Yea
Atkins — Yea
Fong — Yea
Hall — Yea
Chesbro — Yea
Dababneh — Yea
Jones-Sawyer — Yea
Levine — Yea
Logue — Yea
Medina — Yea
Melendez — Yea
Nestande — Yea
Pan — Yea
Perea — Yea
Ridley-Thomas — Yea
Williams — Yea
Dickinson — Yea
Fox — Yea
Frazier — Yea
Yamada — Yea
Gomez — Yea
Gorell — Yea
Beth Gaines — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass, to Consent Calendar.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 15000
Republican 1000
Democratic 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Bradford — Yea
Linder — Yea
Wagner — Yea
Bigelow — Yea
Campos — Yea
Holden — Yea
Eggman — Yea
Pan — Yea
Quirk — Yea
Bocanegra — Yea
Ridley-Thomas — Yea
Weber — Yea
Donnelly — Yea
Gatto — Yea
Gomez — Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on Appropriations.

Passed 14 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 13000
Republican 1000
Total 14000
% of votes cast 100%0%0%0%
How each member voted (14)
Member Party Vote
Holden — Yea
Maienschein — Yea
Mullin — Yea
Skinner — Yea
Gordon — Yea
Campos — Yea
Bocanegra — Yea
Bonilla — Yea
Eggman — Yea
Ting — Yea
Wilk — Yea
Dickinson — Yea
Hagman — Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on Business, Professions and Consumer Protection.

Passed 12 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 11000
Democratic 1000
Total 12000
% of votes cast 100%0%0%0%
How each member voted (12)
Member Party Vote
Achadjian — Yea
Harkey — Yea
Linder — Yea
Perea — Yea
Allen — Yea
Dickinson — Yea
Rodriguez — Yea
Weber — Yea
Williams — Yea
Chau — Yea
Gatto — Yea
Bonta, Mia Democratic Yea

Official roll call →

Subjects

finance labor
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Frequently asked questions

What does AB 1859 do?
Existing law, the Professional Fiduciaries Act, establishes the Professional Fiduciaries Bureau within the Department of Consumer Affairs and requires the bureau to license and regulate professional fiduciaries, as specified. The Moscone-Knox Professional Corporation Act provides for the organization of a corporation under specified provisions of law for the purposes of qualifying as a professional corporation under that act and rendering professional services. The act defines professional services as services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. This bill would provide for the formation of licensed professional fiduciary corporations pursuant to the Moscone-Knox Professional Corporation Act, as specified, and would make these corporations subject to registration by the Professional Fiduciaries Bureau and payment of a licensure fee, as specified. The bill would provide that it is unprofessional conduct and a violation of the Professional Fiduciaries Act to violate, attempt to violate, directly or indirectly, or assist in or abet the violation of, or conspire to violate these provisions, the Moscone-Knox Professional Corporation Act, or any regulations duly adopted under those laws. The bill would require the name of a licensed professional fiduciary corporation and any name or names under which it may render professional services to contain the words "licensed professional fiduciary" and wording or abbreviations denoting corporate existence. The bill would require each director, shareholder, officer, or employee of a licensed professional fiduciary corporation who renders professional services to be a licensed person with regard to the professional services rendered and to also be a licensed professional fiduciary. The bill would prohibit the income of a licensed professional fiduciary corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined, from accruing, in any manner, to the benefit of the shareholder or his or her shares in the licensed professional fiduciary corporation. The bill would require the bylaws of a licensed professional fiduciary corporation to include a provision that requires the capital stock of the corporation owned by a disqualified person, as defined, or a deceased person, to be sold to the corporation or to the remaining shareholders of the corporation within 60 days. The bill would require a licensed professional fiduciary corporation to maintain insurance coverage of at least $1,000,000 for claims against the corporation, as specified. The bill would require a licensed fiduciary corporation that is appointed as a guardian, conservator, personal representative, or trustee by a court to be liable for any licensed professional fiduciary who violates the powers and duties of those appointments while acting on behalf of the corporation. The bill would impose other various duties upon a licensed professional fiduciary corporation, as specified. The bill would provide authority to the bureau to enforce the provisions of this act, as specified, and in accordance with the Administrative Procedure Act. Existing law governing the administration of estates and trusts authorizes the appointment of a person as a personal representative of a decedent's estate, a guardian or conservator of a person or an estate, or a trustee. Existing law defines "person" to include a corporation for these purposes. This bill would provide that if a licensed professional fiduciary corporation is appointed as a guardian, conservator, trustee, or personal representative, each shareholder, officer, director, or employee of the corporation who is a licensed professional fiduciary may individually exercise the powers and duties of that appointment, as specified.
Who sponsors AB 1859?
AB 1859 is sponsored by Maienschein.
What is the current status of AB 1859?
This bill died with 2013-2014 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1859?
Track AB 1859 free on One Click Politics — get push/email alerts when it moves.

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